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Order in Product Customization Decisions: Evidence from Field Experiments

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  • Jonathan Levav
  • Mark Heitmann
  • Andreas Herrmann
  • Sheena S. Iyengar
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    Abstract

    Differentiated product models are predicated on the belief that a product's utility can be derived from the summation of utilities for its individual attributes. In one framed field experiment and two natural field experiments, we test this assumption by experimentally manipulating the order of attribute presentation in the product customization process of custom-made suits and automobiles. We find that order affects the design of a suit that people configure and the design and price of a car that people purchase by influencing the likelihood that they will accept the default option suggested by the firm. (c) 2010 by The University of Chicago. All rights reserved..

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    Bibliographic Info

    Article provided by University of Chicago Press in its journal Journal of Political Economy.

    Volume (Year): 118 (2010)
    Issue (Month): 2 (04)
    Pages: 274-299

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    Handle: RePEc:ucp:jpolec:v:118:y:2010:i:2:p:274-299

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    Web page: http://www.journals.uchicago.edu/JPE/

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    Cited by:
    1. Altmann, Steffen & Falk, Armin & Grunewald, Andreas, 2013. "Incentives and Information as Driving Forces of Default Effects," IZA Discussion Papers 7610, Institute for the Study of Labor (IZA).
    2. Eric Johnson & Suzanne Shu & Benedict Dellaert & Craig Fox & Daniel Goldstein & Gerald Häubl & Richard Larrick & John Payne & Ellen Peters & David Schkade & Brian Wansink & Elke Weber, 2012. "Beyond nudges: Tools of a choice architecture," Marketing Letters, Springer, vol. 23(2), pages 487-504, June.
    3. Shefrin, Hersh & Nicols, Christina M., 2014. "Credit card behavior, financial styles, and heuristics," Journal of Business Research, Elsevier, vol. 67(8), pages 1679-1687.
    4. Tiezzi, Silvia & Xiao, Erte, 2013. "Time Delay and Support for Taxation," MPRA Paper 51233, University Library of Munich, Germany.
    5. Novarese, Marco & Wilson, Chris M., 2013. "Being in the Right Place: A Natural Field Experiment on List Position and Consumer Choice," MPRA Paper 48074, University Library of Munich, Germany.

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